Ann: Change in substantial holding, page-22

MC/SP valuation.

I've researched various methods on valuing a company and its MC/SP, but ended up more confused. There isn't a perfect method, and the situation here is rather unique. Pooling together aspects of several methods, I put forward very crude and conservative numbers on my expectations:

There is likely to be an upfront payment, with an ongoing share of revenue as income is generated. The long term valuation is near impossible to predict as there are too many factors at play, starting with the percentage share negotiated. But a fair estimate of my immediate short term valuation is between 1.5-3x the value of the upfront payment = MC. From previous posts and opinions, this amount is predicted to be at least $10mil, possibly up to $20mil. Based on these numbers, the announcement of a deal could result in a MC of $10-60mil, or SP of $0.015-0.06.

As Judith is progressed and production nears, the multiplier can be increased to 10x, factoring in the potential of revenue.

Some rockets that will help on the way include the potential cash injection of $2.6mil from conversion of options if SP is maintained above $0.005 (we are a whisker away!). The sale of the side projects will also bring in healthy cash flow. TA will give a massive push to SP if the long term high of 0.004 is broken (if 0.005 is touched).

Or all of this becomes irrelevant if there is an outright sale of Judith.

Exciting times ahead, the stars are starting to align for EMP! GLTAH